Dr. Rameswar Rao Jupally
Founder Chairman of My Home Group.
MHIL is spearheaded by Dr. Rameswar Rao Jupally, the Founder Chairman of My Home Group, who leads the business conglomerate in South India. Hailing from a simple village in Mahaboobnagar District,
He had started with a career as a homeopath. His entrepreneurial spirit and restless mind pulled him towards the dynamic field of construction. He shared his vision for MHIL and the value of the SJC acquisition with Indian Cement Review. Excerpts from the interview.
What will the new management structure for SJC look like?
SJC will be run completely by the same dynamic management team of MHIL. MHIL will be taking complete charge of SJC.
How much was the financial investment made to acquire SJC?
We have purchased hundred per cent share in the company for Rs.14000 million. The investment was financed from MHLI's existing debt capacity and by equity inputs from the joint shareholders (Ç 70 million). CRH's equity interest will amount to approximately Ç35 million.
What makes SJC an attractive investment?
The primary advantage is the strategic location that helps us to expand our market reach. Besides, the acquisition adds to our total production capacity. With the addition of SJC to our asset base, MHIL today becomes the market leader in the Andhra Pradesh region of South India. The acquisition will bring benefits arising out the of complementary market coverage.
How long will be the payback period?
That is difficult to predict since it is a function of several variables like market conditions, additional capacity build-up in future, etc. However, we are optimistic that the payback period will be very short.
How do you plan to turn around SJC into a profit making asset?
We want to achieve optimum capacity utilisation and combine it with maximum sales within a short period. With good financial strength and a strong and efficient management, we are confident that we can turn the corner and make Shri Jayajothi a profit earner very soon. We already have a very good dealer network and a good brand reputation to help us grow. Besides, our reliable captive power plants secure energy supply at a low cost. Our existing capabilities and our new acquisition complement each other very aptly.
Will the plant undergo any repairs or be refurbished in any way?
No. Not in a very significant way.
What are your growth plans?
On our drawing board, we have long-term expansion plans so as to considerably increase our footprint across the country. We plan to ramp up our capacity to 12 MTPA in due course and for this we are planning to expand our base in the Southern and Eastern regions.
Any other acquisitions lined up?
No, there are no further plans of acquisitions. Instead of further acquisitions we are looking at faster organic growth of company.